Best Neighborhoods in East TN for Custom Luxury Homes

Building a custom luxury home in East Tennessee is more than just creating a house—it’s about finding the perfect neighborhood that fits your lifestyle, enhances your investment, and connects you with the natural beauty of the region. From the foothills of the Smoky Mountains to vibrant urban communities near Knoxville, East TN offers diverse areas ideal for those looking to design and build a luxury residence.

In this article, we’ll explore the best neighborhoods and communities in East Tennessee for custom luxury homes, highlighting what makes each one special. Whether you’re drawn to mountain views, lakeside living, or proximity to bustling downtown areas, there’s a perfect setting waiting for your dream home.

Why East Tennessee is Perfect for Luxury Living

East Tennessee combines natural beauty, a lower cost of living compared to many parts of the U.S., and a growing real estate market. With a backdrop of rolling mountains, pristine lakes, and thriving communities, it’s no wonder more homeowners are choosing to build luxury homes here. The area also benefits from a mild four-season climate, no state income tax, and access to cultural and outdoor amenities.

When working with a trusted builder like Richardson Construction, you can bring your vision to life in neighborhoods that match your lifestyle. Our custom home construction services in Townsend, TN are designed to help homeowners find the right location and build a home that reflects both function and elegance.

1. Maryville

Maryville is one of the most sought-after cities in East Tennessee for luxury home builds. Nestled at the foothills of the Smoky Mountains, it combines small-town charm with modern conveniences. Families are drawn to its highly rated schools, while retirees appreciate its proximity to the mountains and healthcare facilities.

Why It’s Great for Luxury Homes:

  • Scenic mountain views and rolling landscapes.
  • A mix of upscale gated communities and large parcels of land for private estates.
  • Easy access to Knoxville and McGhee Tyson Airport.

For more insights, explore our blog on 5 Reasons to Build a Home in Maryville, Townsend, or Sevierville.

2. Townsend

Known as the “Peaceful Side of the Smokies,” Townsend offers a quieter, more secluded lifestyle while still being close to Pigeon Forge and Gatlinburg. This area is perfect for homeowners who want to wake up to mountain views, access the outdoors quickly, and enjoy a relaxed pace of life.

Why It’s Great for Luxury Homes:

  • Access to the Great Smoky Mountains National Park.
  • Ideal for custom cabins and luxury homes that highlight natural elements like stone and wood.
  • A close-knit community with a reputation for tranquility.

To see how we bring custom home projects to life in Townsend, browse our portfolio of custom home builds.

3. Sevierville

Sevierville offers the best of both worlds: breathtaking scenery and a vibrant economy driven by tourism. Luxury homes here often feature expansive decks, modern amenities, and designs that embrace both family living and entertaining.

Why It’s Great for Luxury Homes:

  • Popular for vacation homes and primary residences.
  • Access to shopping, entertainment, and fine dining.
  • Close to Dollywood and the Smokies.

If you’re considering Sevierville, our service areas in East TN highlight where Richardson Construction builds high-end custom homes.

4. Farragut

Located west of Knoxville, Farragut is a thriving suburban community known for its upscale neighborhoods, excellent schools, and convenient shopping. Luxury homebuyers love Farragut for its blend of modern living and access to green spaces.

Why It’s Great for Luxury Homes:

  • Large lots in prestigious neighborhoods.
  • Access to Fort Loudoun Lake for water enthusiasts.
  • A reputation for safe, family-friendly living.

5. Tellico Village

Tellico Village, located on Tellico Lake, is a planned community popular with retirees and families looking for luxury waterfront living. Homes here often feature private docks, large windows to capture lake views, and open floor plans perfect for entertaining.

Why It’s Great for Luxury Homes:

  • Premier lakefront properties with boating and fishing opportunities.
  • Golf courses and recreational facilities within the community.
  • A strong sense of neighborhood connection.

For homeowners who dream of combining indoor comfort with outdoor living spaces, check out our blog on designing the perfect outdoor living space in East Tennessee.

6. Knoxville (West Knoxville & Northshore Area)

West Knoxville, particularly the Northshore area, is home to some of the region’s most prestigious neighborhoods. Here you’ll find luxury estates with modern architecture, access to shopping districts, and close proximity to downtown Knoxville’s cultural scene.

Why It’s Great for Luxury Homes:

  • Proximity to employment hubs, universities, and entertainment.
  • Upscale neighborhoods like Gettysvue, Whittington Creek, and Jefferson Park.
  • Options for both new builds and tear-downs for custom projects.

7. Gatlinburg

For those who want to combine mountain living with a vibrant tourism-driven economy, Gatlinburg is an excellent option. Luxury homes here often double as investment properties, with stunning views and custom designs appealing to vacationers and homeowners alike.

Why It’s Great for Luxury Homes:

  • Iconic Smoky Mountain views.
  • Opportunities for luxury rental properties.
  • Thriving arts, dining, and entertainment scene.

8. Alcoa

Alcoa offers a balance of convenience and affordability while still providing opportunities for custom luxury homes. With its growing development and proximity to Maryville and Knoxville, Alcoa is becoming an attractive option for new homeowners.

Why It’s Great for Luxury Homes:

  • Quick access to Knoxville and the airport.
  • Emerging neighborhoods with modern designs.
  • Strong community ties and growth potential.

How to Choose the Right Neighborhood for Your Luxury Home

When selecting a neighborhood in East Tennessee, consider these factors:

  • Lifestyle preferences – Do you want mountain seclusion, lakefront living, or urban convenience?
  • School districts and amenities – Families may prioritize neighborhoods near top schools and parks.
  • Investment value – Some areas, like Farragut and West Knoxville, offer strong long-term appreciation.
  • Design opportunities – Ensure the neighborhood covenants align with your vision for a custom luxury home.

At Richardson Construction, we help clients navigate these choices as part of our proven custom home building process, ensuring every decision supports your long-term goals.

Building a Lifestyle, Not Just a Home

Ultimately, choosing a neighborhood for your custom luxury home in East Tennessee is about aligning your environment with your dreams. The region offers a wide range of options, from the serene mountain landscapes of Townsend to the upscale suburban communities of Farragut.

Our team at Richardson Construction values not only the craftsmanship of homebuilding but also the lifestyle that comes with it. To learn more about how we can help you find the perfect place to build, explore our custom home construction services or connect directly through our contact page.

FAQs About the Best Neighborhoods in East TN for Custom Luxury Homes

What makes East Tennessee ideal for building a custom luxury home?

East TN offers natural beauty, a favorable cost of living, no state income tax, and growing demand for luxury homes—all of which make it an attractive place to build.

Which East TN neighborhoods are best for families?

Maryville, Farragut, and West Knoxville are especially popular among families due to excellent schools and amenities.

Are there good waterfront neighborhoods in East TN?

Yes, communities like Tellico Village and areas around Fort Loudoun Lake provide prime waterfront living.

What are the benefits of building in Townsend?

Townsend offers peace, natural beauty, and access to the Smokies—perfect for homeowners seeking privacy and relaxation.

Can I build a luxury vacation home in Gatlinburg or Sevierville?

Absolutely. These areas are ideal for investment properties that can also serve as luxury retreats.

How do I know which neighborhood is right for me?

Consider lifestyle, amenities, budget, and investment potential. Working with a local builder helps narrow down the options.

Do neighborhoods in East TN have building restrictions?

Some upscale communities have covenants that dictate style, size, or materials. It’s important to review these with your builder.

Are custom homes in East TN a good investment?

Yes. The market is growing, and custom luxury homes often retain or appreciate in value more than cookie-cutter builds.

Can Richardson Construction help me choose a neighborhood?

Yes, as part of our process, we guide homeowners through selecting the right location for their dream home.

How can I get started building in one of these neighborhoods?

Begin by exploring our service areas and then reach out via our contact page to discuss your vision.